SC orders NOW Telecom to pay P136 million dues to NTC

MANILA, Philippines — NOW Telecom Co. Inc. has been ordered by the Supreme Court (SC) to settle up to P136 million in unpaid user fees since 2005 to the National Telecommunications Commission (NTC).

The SC’s Special Second Division, in a decision, acted on the motion for partial reconsideration filed by NOW Telecom on a 2023 ruling by the court over the provider’s disputes with the NTC.

The SC validated the NTC in its computation of the spectrum regulatory fee (SRF) and spectrum user fee (SUF) that NOW Telecom has to pay.

The balance amounts to P135.77 million, split into P126.09 million in SRF and P9.67 million in SUF. The fees owed to NTC, computed as of 2005, were upheld by the SC, confirming that they were correct and reasonable.

Given the SC’s decision, NOW Telecom said it respects the finality of the case, but insists on its aspiration to enter the mobile segment. The provider of connectivity solutions no longer wants its hands on 3G frequencies, as 3G will be shut by the end of the year as ordered by the NTC.

Moreover, NOW Telecom is hoping the SC would rule in its favor in its petition for mandamus involving another set of frequencies in the 3.6 to 3.8 Ghz band.

These frequencies were awarded to NOW Telecom through a grant issued by the Anti-Red Tape Authority (ARTA), which was later reversed by the Department of Justice (DOJ) through a legal opinion.

The DOJ said that only the NTC maintains authority in granting frequencies, dismissing ARTA’s claim it could do so on the pretext of ease of doing business.

This is why NOW Telecom is pushing NTC to award the frequencies, praying that the SC would rule in its favor on the matter. If the SC sides with NOW Telecom, the provider will be given the frequencies that could serve 5G networks.

NOW Telecom also plans to use the frequencies to prepare for the eventual development of 6G. Aside from this, it has its eyes set on linking the spectrum to the now-popular satellite-to-mobile technology.

Further, NOW Telecom wants to discuss with the Department of Information and Communications Technology its plan to become a larger player in the telco industry.

In particular, the provider hopes to take advantage of the Konektadong Pinoy Act that opened up Philippine telco to more players by removing some of the toughest investment barriers.